(Please note that this is an Excel assignment. So please do not use a calculator for any part of this assignment. Part of the learning objective for this assignment is to work out capital budgeting in Excel) Suppose you are hired by Mavs \& Co. This company was originally established to make tennis balls. It is now a leading producer of tennis balls, baseballs, and golf balls. The company has sought opportunities in whatever businesses seem to have some potential for cash flow. The of your company recently identified another segment of the sports ball market that looked promising and that he felt was not adequately served by larger manufacturers. That market was for bowling balls with the Texas state flag image. He believed many Texas bowlers would love the new products. The company has just spent $10,000 for test marketing. The results can help the company to forecast the optimal quantity of bowling balls that the company can produce as well as the optimal price it can charge for each bowling ball. The bowling balls would be manufactured in a building (warehouse) owned by the firm and located in Arlington, TX. This building and the land can be sold for $455,000 after taxes. If the project is accepted, management assumes that the warehouse will be sold for $455,000 (after taxes) in year 5. Your company is considering investing in a machine to produce bowling balls. The cost of the bowling ball machine is $400,000. The machine should be depreciated according to MACRS 5-year life and it has an estimated market value at the end of five years of $34,000. Production (in units) by year during the five-year life of the machine is expected to be as follows: 6000,8000,13000,10000 and 7000 . The price of a bowling ball in the first year will be $80 and will increase 5% per year thereafter. The production costs are $45 per unit. The plastic used to produce bowling balls is rapidly becoming more expensive. Because of this, production costs will increase 8% per year thereafter. Like any other manufacturing firm, Mavs \& Co. finds that it must maintain an investment in working capital. It will purchase raw materials before production and sale, giving rise to an investment in inventory. It will maintain cash as a buffer against unforeseen expenditures. And, its credit sales will generate accounts receivable. Management determines that an immediate (year 0 ) investment in the different items of working capital of $20,000 is required. Net working capital is forecast for the following five years as follows: $35,000,$30,000,$20,000,$30,000,$0. Suppose the appropriate discount rate is 12% and the tax rate for this project is 34%. What is the NPV of this project? What is the IRR of this project? Suppose this is your only investment opportunity in the near future, should you invest in this project? Please choose from the following schedules for depreciation calculation